Joint ATMA-PwC report forecasts industry revenue expansion to Rs 1,300 thousand crore driven by domestic demand, export growth, premiumization, and sustainability initiatives across automotive segments.
16 Sep 2025 | 2017 Views | By Sarthak Mahajan
The Indian tyre manufacturing sector is positioned for substantial expansion over the next two decades, with industry revenue projected to grow twelve-fold to Rs 1,300 thousand crore by 2047, according to a comprehensive report released by the Automotive Tyre Manufacturers Association (ATMA) and PwC India.
The report, titled "Viksit ...
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The Indian tyre manufacturing sector is positioned for substantial expansion over the next two decades, with industry revenue projected to grow twelve-fold to Rs 1,300 thousand crore by 2047, according to a comprehensive report released by the Automotive Tyre Manufacturers Association (ATMA) and PwC India.
The report, titled "Viksit Bharat 2047: Vision and roadmap for the Indian tyre industry," indicates that production volumes are expected to expand approximately four times during this period. The significant revenue growth trajectory is attributed to multiple factors including changes in the industry's revenue composition, premiumization trends, raw material price increases, expanding export markets, electrification, and the growth of service-oriented business models.
Kavan Mukhtyar, Partner and Leader for Automotive at PwC India, emphasized the sector's export potential, particularly in commercial and passenger vehicle segments across key markets including the United States and European Union. He highlighted that innovation in advanced material engineering, sustainable alternatives to natural rubber, and digital technology investments would be crucial for maintaining global competitiveness.
The growth projections are supported by several key drivers. Rising economic activity from infrastructure spending and robust domestic consumption are expected to fuel original equipment manufacturer (OEM) and replacement tyre demand with approximately 10% compound annual growth rate through fiscal year 2047. Passenger vehicle and two-wheeler sales are anticipated to benefit from improving per capita income, while commercial vehicle demand will be supported by infrastructure investments and consumption patterns.
Arun Mammen, Chairman of ATMA, described the findings as evidence of the industry's transformation potential, driven by economic growth, evolving mobility trends, and expanding global presence. He noted that premiumization, sustainability-focused innovation, and technology emphasis would be primary growth catalysts.
The export segment represents a significant opportunity, with the report identifying targeted interventions that could enhance India's position in international markets. Success factors include export-focused growth strategies, market-specific innovations, improved trade agreement access, enhanced cost competitiveness, and stronger brand positioning in passenger and commercial vehicle tyre categories.
Professional tyre management services are expected to experience substantial growth among fleet operators through 2047. Increased recognition of tyre health management importance and customer demand for Tyre Pressure Monitoring System-equipped fleets will drive demand for services including periodic tyre management, advisory services, and optimal fleet management solutions.
PwC India has introduced a CHARGE framework as a strategic approach for achieving the 2047 vision. The framework focuses on six key areas: Customer relevance, High-quality standards, Adaptability, Resilience and resource efficiency with sustainability focus, Growth through innovation, and Empowering alliances and partnerships.
Sanjay Dawar, Partner and Leader of One Consulting at PwC India, emphasized that realizing the projected growth would require comprehensive approaches combining innovation, sustainability, digital transformation, and strategic partnerships across the industry ecosystem.
The report also acknowledges potential challenges, including domestic natural rubber availability, disruptive mobility technologies such as vertical take-off and landing aircraft, regulatory environments, and non-tariff trade barriers that could impact growth trajectories.
ATMA represents large tyre companies accounting for over 80% of India's tyre production and serves as the industry's primary interface with government bodies, media, and international associations. The organization works to promote and safeguard industry interests while participating in policy development processes.
The projections align with India's broader economic development goals under the Viksit Bharat 2047 initiative, positioning the tyre industry as a significant contributor to the country's automotive sector ambitions and industrial growth objectives.